President’s Message

As we begin another year, it is gratifying to reflect that Huntingdon Valley Bank continues its longstanding tradition of providing a safe, secure and stable source for all of your deposit and lending needs.

In 2011, we celebrated our 140th anniversary as an independent local community bank.  The reception was held at our newly renovated Lower Moreland branch and was well attended by many of our loyal customers and friends.

Community banking begins with the customer, his or her wants and needs.  It sounds simple but larger banks just don't understand it.  People want a bank where they're known by name and made to feel at home as soon as they come in the door.  When one of our staff says "May I Help You" they really want to help you.  No one ever has to pay a "fee" for using a teller.

There are several factors that distinguish us as a real community bank.  First, we are locally run.  Decisions are made by people who are based within our branch network.  Second, there are onsite controls over all services, products, loan approvals and interest rates.  Because we are locally managed we set our rates right here in Huntingdon Valley not a corporate office located somewhere else.  Third, deposits of the bank are invested back into the community in the form of residential lending and business loans.  This dedication and financial support makes the community we serve a better place to live.

In line with the above, our financial performance continues to remain strong and profitable as we closed our 140th year.  December 31, 2011 year end operating results reflect stability and consistent progress within this unpredictable economic climate.  Total assets stood at $157 million with deposits of $134 million (an approximate increase of 12% over fiscal year 2010).  Our core deposit mix remains at an acceptable level of 63%, the result of an influx of Certificate of Deposit funds as more customers move into various interest earning products.  Our financial health has allowed our Tier 1 leverage ratio along with all associated ratios to reflect a well capitalized position under existing regulatory guidelines.

As we move forward into 2012, our business development efforts will continue to support a solid base of relationships which will provide many benefits to our customers as well as to the organization.  We pride ourselves on being a strategic alternative to the larger financial institutions.  As a result, our Commercial Lending team has been reenergized to include an experienced business lender who stands ready to deliver competitive credit products and outstanding customer service.

In our Residential Lending department, we succeeded in surpassing last year's excellent performance by generating almost $140 million in loan originations.  This represents a 7% increase over the past operating period.  This is a tremendous accomplishment in a market filled with the many resources that are available to our customers.  This past year's results clearly indicates HVB's competitive presence in the local residential market.  Additionally, the bank continues to maintain its gold standard position in the First Time Homeowner Program and its Community Reinvestment rating.  Our mission of bringing home ownership to the community continues to be achieved as we navigate through the next year.

During 2011, we continued to take several steps to serve our marketplace better.  Our Retail Branch Network's performance has once again confirmed our customers' desire for the services of a local community bank.  Along with our existing competitive product base, in 2012, we expect to initiate our own innovative Mobile Banking product in an effort to not only satisfy the technological needs of our existing customers but to lay the groundwork to attract those in the future.  Product enhancements within the checking and savings menu are also expected to be displayed during the second half of this year.  Our commitment to the communities we serve continues to be emphasized by our participation in the local chambers, many charitable events, and business initiatives.

Commercial, Residential and Retail Branch Services, competitive products along with innovative ideas that truly benefit you...the customer...now that is what community banking is all about.  The success and progress of 2011 is a direct result of the energy and commitment of Huntingdon Valley Bank employees at every level.  I want to express my appreciation for their fine efforts.

On behalf of the entire Huntingdon Valley Bank organization I'd like to say thank you to you, our stakeholders, our valued customers, for your loyal support and confidence.  We look forward to meeting your financial needs now and in the future.

     
     
            Kevin  J. Gallagher
            President and CEO